Buying Off-Plan Property in Morocco (VEFA): Safeguards and Steps

Buying a home off-plan in Morocco (sale of a property to be completed, VEFA) is governed by law no. 107-12, incorporated into the Code of Obligations and Contracts. The preliminary contract must be made by authentic deed or by an authorised professional, may only be signed once the foundations are completed at ground floor level, and the price is paid in instalments as the works progress. Before signing, check the land title, the building permit and the guarantee for refund of sums paid.

Checks before signing

The land title of the plot and the absence of blocking encumbrances, at the Land Registry.
The building permit and approved plans.
The developer's identity and legal standing.
The specifications: floor area, materials, fittings, common parts.
The guarantee for refund of sums paid if the project is not completed.
The payment schedule and expected handover date.

The stages of an off-plan purchase

Step 1: an optional reservation contract, with a deposit capped at 5% of the price.
Step 2: the preliminary sale contract, once the foundations are completed at ground floor level.
Step 3: provisional registration of the buyer's rights on the land title.
Step 4: staged payments according to the stages of progress set in the contract.
Step 5: completion of the works and issue of the occupancy permit.
Step 6: final sale contract, payment of the balance and registration at the Land Registry.

The buyer's guarantees

The developer must guarantee the refund of sums paid if the project is not completed, through a bank guarantee or insurance. The contract must set out the penalties for late handover and the conditions for termination.

Provisional registration on the land title protects the buyer against the same unit being sold to a third party or new encumbrances being registered during the works.

Documents to gather

Ownership certificate for the land title.
Copy of the building permit and plans.
Specifications and technical description.
Draft preliminary contract.
Refund guarantee certificate.
Proof of financing (bank loan approval, where applicable).

Costs to expect

On top of the price, the buyer normally bears registration duties, Land Registry fees and the fees of the person drawing up the deed. The exact amount depends on the price and the nature of the transaction: have it calculated before signing the final contract.

Common mistakes

Paying large sums on the strength of a simple booking form.
Signing a preliminary contract drawn up by someone not authorised to do so.
Not registering your rights on the land title.
Accepting handover without recording defects and reservations.
Overlooking the late handover penalty clauses.

Frequently asked questions

Who can draw up an off-plan sale contract in Morocco?

The contract must be made by authentic deed (notary or adouls) or by a lawyer authorised to draw up this type of deed, in accordance with law no. 107-12.

What happens if the developer does not deliver?

The buyer can claim the agreed late handover penalties, seek termination of the contract and the refund of sums paid, by calling on the refund guarantee.

How much do I pay on reservation?

The law caps the deposit paid under a reservation contract at 5% of the price. Other payments follow the progress of the works set out in the preliminary contract.

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